How much is my App worth?

So I am developing my own software application. Its a medical app to help people with a certain condition. Its early days and I think it is possible.

I cant say exactly what it is but it could be mobile for use during the day, and an online interface for a more detailed view and review later. It had me thinking about how I would monetise
it.

We buy the occasional app from the App Store for my boys, normally I get them to aim for free apps, but every so often there is one they want for 79p or £1 something. I think the most I
have been persuaded to pay was £3.99.

Free is fine but it normally doesn't give all the functionality or has some features you want locked in till you pay an additional sum, or you are force fed adverts with a banner or a video on a
countdown timer. I don't like these so free is out.

If the default is 79p this seems ok, but how much would it realistically be worth at this price? Quick google and the condition I am hoping to help people with affects 1 in 25,000
people. So in the UK there are roughly 64 million people, which means there are possibly 2560 people that I could help.

This makes my app worth about £2000 in the UK assuming all want to buy in. But that is not realistic. If I was lucky I may get 5% of people buying my app that would bring my app value
down to £101.12… How much?

I calculate it would take me about 1000 hrs to develop, and at that value would give me an hourly rate of 10p an hour. Time to put the brakes on and have a re think. If I reverse the
calculation instead it may be better.

Id like at least £15 per hour, So that would make my app worth £15000, so I would need to sell nearly 19000 apps to make it worth while at 79p.

Oh and Im also forgetting I won't get all of the 79p, the app store will take 30% so thats it down to 55p, which is an app value of £70.40. Thats even less! I would need to sell 27000
copies more than the people in the UK that would need it.

I could put the price up, and cost it per user for the development. Sticking with the 5% take up of the people with a need in the UK which would be 128 people. To cost my app it would
make each copy cost £117. And add on the 30% app store fee, its up to £152 per user. Again Im not sure this would fly. I need to think of a different way to monetise my app.

Its an interesting subject and I have only just scratched the surface here, I was at a tech meet up last week, and this was one of the hot topics discussed. Which was how much is
software worth. The feeling was that the perceived value of software is much lower today than it was a few years ago. This might be to do with the App Store and everyone buying some
sort of software at the 79p and carry it with them on their phone. Anyway its something that I am thinking of at the moment.

Its just a short one this week. I have been super busy. My first commercial website is almost ready to go live. I have gone through a few iterations of change with the client which has made
it more polished and I am pleased with the result.

So thanks for your support and reading my posts. Living the dream now. So I have had a few more work requests come in this week and fingers crossed I will have some mega exciting news
for next week.

having looked into app development some time ago (and decided not to bother!) I think that it's probably best to shift the focus of where your app value is i.e. it's not cash. I'd say write the app
and give it away free for the social benefits it will bring to the users. This app once on the App Store will demonstrate a) you can develop an app to the standards required by Apple and b) you have
current experience in app development c) you actually know how apple QC and the app store mechanism works. Use these to develop a "CV" of sorts when going for contract positions as an app developer,
There are a lot of non-software companies out there that want short term/freelance app developers just to get something on the app store or do minor changes and with a proven track record I'd say
you're in with a good shout.

Hope my rambling makes sense?

Best of luck!

Matthew

#2

Adrian(Monday, 27 March 2017 04:59)

Hi Mathew,
Thanks for the comments. Agreed, my post was mainly my ramblings too. I'll push on with my app regardless and see what happens. Hope you are well
Thanks
Adrian

#3

Matthew(Tuesday, 28 March 2017 04:57)

Hi Adrian,

Good to hear from you again; I'm doing fine thanks for asking. Just about hanging on to my job for now! Just a passing thought but are you familiar with a company called Intelligent Plant? They have
something called "Industrial App Store" for android and apple industrial type apps. https://www.intelligentplant.com/

Might be worth a look if you're planning a more specialised app? SMACS5 for iPhone? I'm sure you could do it!